Trade, Commerce and Entrepreneurship

FDA Circular to Boost Small Food and Cosmetics Businesses– Sen. Bam

The release of Food and Drugs Administration’s simplified rules and regulations will make it easier for cosmetics micro enterprises to legitimize their status and enter the formal economy, according to Senator Bam Aquino.

“Micro entrepreneurs are having a difficult time expanding because they have no appropriate FDA approval that will vouch for the safety of their products,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

With the release of FDA Circular No. 2014-024, the senator said small businesses can now enter the formal market, giving them a better chance of expanding their business.

The FDA circular makes it simpler and easier for micro enterprises to apply for license to operate (LTO) and market authorization for their products, in accordance in with the recently passed Republic Act 10644 or the Go Negosyo Act.

“With the new and simplified process of FDA registration, our small businesses will be able to expand and grow,” Aquino said.

The Go Negosyo Act mandates the creation of Negosyo Centers, under the Department of Trade and Industry (DTI), in each city and municipality around the country that will make it easier for entrepreneurs to register and start up their businesses, as well as gain access to sources of financing.

In addition, the Negosyo Centers will provide courses and development programs, training, advice on business conceptualization and feasibility, financing, management, capability building, human resources, marketing and other support services.

The FDA circular said the process of application and approval are made simple and compatible with the Department of Trade and Industry (DTI) and local government units,

In addition, the circular will be consistent with the objectives of the Go Negosyo Act, Magna Carta for MSMEs and the Barangay Micro Business Enterprises Act of 2002.

The circular will apply to all micro enterprises engaged in the manufacture and distribution-wholesale of cosmetic products such as fragrance and toiler or bath soap as well as laundry and dishwashing soap bars, and other related products.

Micro enterprises involved in the manufacturing of processed food products are also covered by the circular.

Sen. Bam to LTFRB: Embrace innovation, support start ups

The Land Transportation Franchising and Regulatory Board (LTFRB) must embrace innovation and provide some leeway to transport start ups, which provide safe and affordable means of transportation to the commuting public.

“The government should encourage innovation, not curtail it. The LTFRB must give these transport start ups some leeway as we review current laws on franchising,” said Senator Bam Aquino, chairman of the Senate committee on Trade, Commerce and Entrepreneurship

Aquino said the LTFRB can provide these transport start ups, such as Uber, Tripid, GrabTaxi and EasyTaxi, some leeway, the same way it provided provisional authority to cargo trucks and new buses to ply their routes

“The government needs all the help it can get, especially from the private sector, as it continues to find ways to improve the country’s mass transport system and solve the perennial traffic problem,” the senator said.

Aquino describes Uber as an innovation as it provides commuters with a safer mode of transportation and quality service at the same time.

Uber is a high-tech transportation network that makes mobile apps that connect passengers with drivers of private vehicles for hire and car-pooling services. The company arranges pickups wherein cars are reserved by sending a text message or by using a mobile app and within 10 minutes the vehicle would arrive

The uber system helps alleviate the monstrous traffic problems in California, especially through car-pooling.

“The government should not hold back innovations that alleviate the plight of our commuting public,” the senator said.

 A staunch supporter of start up businesses, Aquino has filed a measure granting them tax exemption from operations for two years.

Aquino said Senate Bill 2217, also known as the Start-Up Business Bill, would provide these enterprises the proper time to stand on their own as they try to create a niche in the market.

“The intervention provides the opportunity for these start-ups to get organized, establish their business operations and market base,” said Aquino.

The measure proposes a tax exemption from operations for two years, given that these enterprises are not an affiliate, a subsidiary or a franchise of any existing company.

Also, these start-ups must not have any other existing registered company in case of a sole proprietorship.

Sen. Bam renews call to eliminate corruption in Port of Manila

Senator Bam Aquino reiterated his call to concerned authorities to eliminate corruption, extortion and other illegal activities in and around Port of Manila as they contribute to congestion, traffic and high prices of goods.

“If we’re going to fix this, we should do it completely and we should solve the issues for the long-term,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

“We should get rid of illegal activities such as extortion because they hamper the delivery of goods and contribute to the increase in prices of goods and services,” he added.

The senator said the government should apply the full force of the law against corrupt individuals who hamper port operations through their illegal activities.

“The government must show that it means business by going hard against these individuals who are making a living through illegal means,” he said.

Aquino renewed his pronouncement after Malacanang noticed that extortion activities in and around the port contributes to port congestion.

The senator made the same call during the first Senate hearing on port congestion where stakeholders complained about the “along the way” fees being collected by unscrupulous individuals.

“While decongesting our port is the main priority, concerned government agencies must also look at other factors that contribute to this problem, like corruption,” he said.

Aquino said extortion and corruption contribute to inefficiency, delaying the processing and delivery of shipments and discouraging truckers and shipping companies from fulfilling their obligation.

“Ultimately, the consumers will bear the full brunt of this because shipping companies will pass on to them their additional losses,” Aquino said.

The lawmaker also encouraged victims to come forward and file a case or complaint against those behind these illegal activities.

“We need the cooperation of everyone to combat corruption. As they say, evil will prevail if good men do nothing,” Aquino stressed.

The senator said complaints can be coursed through the WASAK or Walang Asenso sa Kotong Hotline (16565 and 0908-8816565) where entrepreneurs can air complaints against public officials.

Worsening Traffic Condition to Hamper Growth of Auto Industry – Sen. Bam

Senator Bam Aquino warned that worsening traffic conditions would hinder the growth of the country’s automobile industry.
 
“Aside from economic losses amounting to billions of pesos a day, our booming auto industry will also take a huge hit due to our traffic problems,” said Aquino.
 
To address this and other issues hounding our car industry, Aquino has filed Senate Resolution No. 929 seeking an inquiry to ensure that the automotive industry roadmap is consistent with and integrated into other existing government policies and plans.
 
“Given the local demand for automobiles and the worsening road condition and congestion, there is a need to ensure that the automotive industry roadmap is aligned with the country’s infrastructure roadmap,” said Aquino.
 
Earlier, the Board of Investments (BOI), the Philippine Automotive Competitiveness Council Inc. and relevant government agencies have been tasked to formulate development roadmap for the auto industry to ensure its viability and competitiveness.
 
Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, stressed that a clear direction is crucial for the auto industry with the 2015 ASEAN Economic Integration fast approaching.
 
“I believe that the Philippine Motoring Industry can be at the forefront and be the driver of this movement, with our capability to develop world-class products that are globally competitive and backed by a culture of quality and excellence,” the senator said.
 
Presently, Aquino said the auto industry is one of the country’s key economic drivers, accounting for 12 percent of the total manufacturing sector output and about four percent to the total GDP of the country.
 
In addition, the auto industry directly employed 60,000 workers and indirectly hired 500,000 more.
 
“Total investments have reached P120B and the industry has remitted P30B annually to the government in the form of taxes and other duties,” the senator said.
 
Aquino said the local auto industry has grown rapidly in the past three years. In 2013, it has breached the 200,000 unit sales mark with 212,414 units sold while 250,000 cars are expected to be sold this year.
  
However, locally assembled vehicles presently account for only 32 percent of the supply while competitiveness of the country’s auto parts companies is weak compared to other countries in Asia.
 
“The government should further develop and improve strategic programs to reduce the cost of doing business by cutting red tape, which ultimately benefits consumers,” Aquino said.
 
The lawmaker added that the roadmap should also encourage the entry of electric vehicles and it should be integrated in the long-term plans for the country’s environmental protection and preservation.

High Local Shipping Cost Increases Prices of Goods – Sen. Bam

The costly and cumbersome inter-island shipping is one of the roadblocks in increased prices of goods that will be a burden for consumers and will hamper the growth of the micro, small and medium enterprises (MSMEs) in the country, a senator said.

“As an archipelago composed of more than 7,100 islands, the country relies heavily on sea routes interconnecting the islands. Inter-island shipping is crucial in the transport of goods especially this coming Christmas season,” said Senator Bam Aquino.

However, inter-island shipping is exclusively reserved for ships bearing the Philippine flag and shipping cost impacts the movement and price of traded goods in the country.

“While this helps the domestic shipping industry, the cost of shipping is hampering trade especially for the MSMEs,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

As a response to the call of the President and key stakeholders, Aquino has filed a bill seeking to allow foreign ships to call in multiple ports provided that their cargoes are intended for import or export and duly cleared by the Commissioner of Customs.

Aquino’s Senate Bill No. 2364 will amend Section 1009 of the Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of 1978 to introduce reform in the shipping industry.

During one of the committee hearings, it was discovered that it is cheaper to send products from other countries to the Philippines than to ship goods within the country.

For example, the cost of shipping a 20-foot equivalent unit (TEU) from Kaoshiung, China to Cagayan de Oro is $360 or P16,000 only.

However, the cost of shipping the same cargo from Manila to Cagayan de Oro will take $1,120 or almost P50,000.

“MSMEs who are importing or exporting goods will be able to access a cheaper alternative in transporting their goods through co-loading in foreign ships. Ultimately, this leads to lower prices of goods for the Filipino public,” Aquino said.

If passed, the bill will allow importers and exporters to co-load in foreign ships going in or out of the Philippine jurisdiction.

Moreover, this bill gives clarification on the definition of common carriers and public service in the shipping industry.

With this bill, foreign cargoes shall not be subjected to the law concerning common carriers and public services as defined in the Civil Code and the Domestic Shipping Development Act, respectively.

Lower Customs Cost for OFWs’ Balikbayan Boxes, Packages – Sen. Bam

Good news for 10 million overseas Filipino workers (OFWs) burdened by the tedious and costly process of sending balikbayan boxes to their loved ones in the Philippines.

Sending balikbayan boxes and other low-value and low-risk packages to the Philippines will be faster and cheaper if the proposal of Senator Bam Aquino to update the current de minimis threshold is enacted into law.

“Sending a balikbayan box home especially this coming Christmas season becomes burdensome for these modern-day heroes. Currently, these packages undergo a tedious process in the customs and are charged fees that are discouraging for OFWs to send more regularly,” the senator said.

“There is a need to provide the ten million Filipinos abroad, who have been already contributing greatly to the economy the past four decades, a better customs administration by reducing the de minimis threshold,” he added.

Currently, the Philippines has the lowest de minimis threshold, or the minimal volume of declaration of goods in the customs for consignments, in the ASEAN, at PhP10 or US$0.23. The ASEAN average threshold is at a hundred dollars.

“The extremely low Philippine threshold has not been changed since 1957 and is clearly antiquated. It needs to be updated to be reflective of current prices,” the senator said.

The lawmaker explained that thresholds for customs declaration signify increased documentation and processes for shipments at entry points in the country.

“Increased documentation leads to larger turnover and delivery time of goods, and larger administration costs that would yield lower revenue impact for both businesses and government,” he added.

 By increasing the de minimis level to a more realistic and relevant figure of P10,000, Aquino saidbalikbayan boxes and other packages of OFWs, entrepreneurs and other individuals will be processed by Customs faster with minimum fees.

“Also, it will enable the Bureau of Customs to focus its efforts in looking out for high-value, high-risk and high-revenue goods for collection and enforcement, thereby making customs processes more efficient,” he added.

Speed Up Decongestion of Port to Ease Traffic – Sen. Bam

Senator Bam Aquino called on the government to speed up the process of port decongestion so as not to further burden the motorists and commuters who are already affected by the everyday traffic jams in Metro Manila.

“While decongesting Port of Manila is important, we must also guarantee that the public interest and welfare will not be compromised,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

At the same time, the lawmaker called on concerned government agencies and local government units (LGUs) to ensure that traffic enforcers are in place to help alleviate the traffic problem.

Aquino also appealed to the public to bear with the heavy traffic in the next two weeks due to the government’s campaign to decongest the Port of Manila.

“We ask the public to further stretch their patience as the government solves the port decongestion problem that we are facing right now,” said Aquino.

Aquino said the government has no other recourse but to implement drastic measures to decongest the country’s main port, saying this problem will worsen if not immediately addressed.

“Many businesses will be affected and prices of goods will go up if this port congestion problem persists and we must not allow this to happen,” the senator explained.

Aquino said the public would ultimately benefit once the port congestion problem is solved.

From September 8 to 21, the Metro Manila Development Authority (MMDA) will implement the last mile route, which will enable trucks to ply main roads, even during truck ban hours, provided that they carry cargo for shipment to their designated end-points.

Last month, Aquino’s committee investigated the port congestion problems and came up with several proposals to help solve the problem.

During the hearing, the city of Manila agreed to open more trade lane routes for trucks while concerned government agencies committed to work during weekends to hasten the releasing process in the port.

Sen. Aquino’s committee is expected to visit the Port of Manila later this month to check if there are improvements or if additional changes are necessary.

Secure Competition Policy First, Cha-Cha Later – Sen. Bam

Pass the Fair Competition Act first before changing the economic provisions of the 1987 Constitution.

Senator Bam Aquino made this pronouncement, emphasizing that a competition law will provide Filipino businesses with the needed protection if economic provisions of the Charter are relaxed.

“We need to pass the competition law first. If you’re opening up the economic provisions of the Constitution at wala kang competition policy, then we’re opening up a lot of uncertainty,” Aquino said in a television interview.

“You’re opening up the gate pero hindi mo alam na ang papasok diyan will act fairly with the rest of the people in the house,” added Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

The senator stressed that amending the economic provisions of the 1987 Constitution is needed to entice foreign direct investments and push the country to the next level of development.

Aquino recently sponsored Senate Bill No. 2282 or the Fair Competition Act of 2014. Senate Bill No. 2282 is a consolidation of several measures, including Aquino’s Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013.

Aquino said the passage of the Fair Competition Act is long overdue because the Philippines is one of the few remaining countries without a competition policy that will protect consumers and businesses, whether big or small.

 Aside from this, the passage of a strong competition policy is crucial with the 2015 ASEAN Economic Integration fast approaching.

 

Fair Competition Act to Eliminate Cartels, Monopolies – Sen. Bam

The passage of the Fair Competition Act into law will eliminate monopolies, cartels and other unfair business practices that lead to high prices of goods and services.

Senator Bam Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, made this pronouncement during his sponsorship speech for Senate Bill No. 2282 or the Fair Competition Act of 2014.

“If this bill will be enacted into law, rice cartels that caused the sudden rice of prices will cease to exist,” the senator said, adding that President Aquino himself called for the elimination of this illegal practice to drive down prices of goods and other products.

Aquino said the bill safeguards the welfare of businesses, large and small, and protects honest, hard-working entrepreneurs against abuse of dominance and position, and other unfair practices that put both Filipino businesses and their consumers at risk.

“The Fair Competition Act, moreover, promotes a culture of healthy competition that inspires ingenuity, creativity, and innovation in addressing market needs,” added Aquino, whose Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013 was among the measures consolidated under Senate Bill No. 2282.

In his speech, Aquino said the Fair Competition Act of 2014 will, among other things, promote and enhance economic efficiency and competition and ensure that industrial concentration would not limit economic power to a few.

“It will also prohibit anti-competitive agreements and abuses of dominant position that distort, manipulate, or constrict the operations of markets in the Philippines,” the senator stressed.

Aquino added that the push for inclusive growth would be much easier with a help of a competition policy that gives entrepreneurs and small businesses the capability to compete against big businesses.

“I’m hoping this competition policy, if passed, can support our micro, small and medium enterprises, let them grow into larger enterprises and provide more jobs to our countrymen,” Aquino emphasized.

At the same time, Aquino allayed fears that big businesses with high market share will be affected by the competition policy.

“This is not against companies that have high market share. It’s against companies with high market share and who are using that position to abuse their powers or abuse smaller players in the market,” he explained.

The Philippines is one of few developing countries that do not have a valid competition policy.

In the past two decades, Congress tackled several competition bills but lawmakers failed to find common ground on key provisions, hampering their passage into law.

“The Fair Competition Act is both pro-poor and pro-business.”

Sen. Bam Hits Harassment, Corruption vs. Foreign Investors

Senator Bam Aquino condemned the rampant harassment, red tape and other forms of corruption in government agencies, saying these illegal activities force foreign businessmen to pack their bags and bring their investments to other countries.

“Good governance is key in promoting ease of doing business. All forms of harassment and corruption at any level of government weakens our national competitiveness and hampers our drive for sustained economic growth,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

“These instances discourage prime potential investments, take away job and other livelihood opportunities for Filipinos and may hamper the nation’s achievement of its investment and growth targets,” added Aquino.

Aquino’s reaction stemmed from complaints of foreign nationals who experienced harassment, extortion and other forms of corruption in several government agencies while doing business in the country.

In addition, the senator said numerous permits, clearances and requirements, red tape, inconsistent regulations, and non-uniformity of fees being imposed are becoming too burdensome for investors.

“There is a need to simplify the procedure of registration for foreign investors in order to promote investments in the Philippines,” the senator stressed.

 Aquino recently filed Resolution No. 762 seeking to conduct an investigation on the procedure of registration of foreign investments and fees imposed by government agencies such as the Department of Trade and Industry, Board of Investments and Bureau of Immigration.

“This move aims to rationalize the administration of fiscal and non-fiscal incentives for foreign investors,” the senator said.

 The BOI, as a policy-making body, is charged with the duties, among others, of preparing an annual investment priorities plan that gives incentives to specific activities.

It also recommends to the Bureau of Immigration (BI) the entry of foreign nationals for employment purposes and inspects registered enterprises for compliance purposes.

 In addition, Aquino has initiated the creation of WASAK or the “Walang Asenso sa Kotong” hotline (16565 and 0908-8816565) where small businessmen can air their complaints and other issues against government agencies.

 

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